At the end of the current year, Accounts Receivable has a balance of $635,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,860,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. 7,150 V b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable 635,000 Allowance for Doubtful Accounts $ 627,850 X Bad Debt Expense c. Determine the net realizable value of accounts receivable.
At the end of the current year, Accounts Receivable has a balance of $635,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and sales for the year total $2,860,000. Bad debt expense is estimated at 1/4 of 1% of sales. a. Determine the amount of the adjusting entry for uncollectible accounts. 7,150 V b. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable 635,000 Allowance for Doubtful Accounts $ 627,850 X Bad Debt Expense c. Determine the net realizable value of accounts receivable.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter5: Sales And Receivables
Section: Chapter Questions
Problem 49BE: Accounts Receivable Balance Hart Inc. began the year with $315,700 of accounts receivable. During...
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